Book Value Model Formula
Book value per share total common stockholders equity preferred stock number of common shares.
Book value model formula. Here s the formula of price to book value price to book value ratio market price per share book value per share. Book value total assets total liabilities. Total equity preferred equity and total outstanding shares.
Book value per share conclusion. Book value may also be. The formula is shown below.
To find the equity you should subtract the company s liabilities from its assets. Below is the book value formula. The formula for calculating book value per share is the total common stockholders equity less the preferred stock divided by the number of common shares of the company.
The formula for book value per share requires three variables. The book value figure is typically viewed in relation to the company s stock value market capitalization and is determined by taking the total value of a company s assets and subtracting any of the liabilities the company still owes. The company s balance sheet.
The book value per share is the minimum cash value of a company and its equity for common shareholders. The price to book value ratio p b formula is also referred to as a market to book ratio and measures the proportion between the market price for a share and the book value per share.